What would you do with $1 million?

[tigerboi]

i can buy the 2 bed unit im living in for $240,000 ish & put away say 1/2 which is

$400,000 & spend $200,000...i will give the pillypines a miss maybe for a hols?.

$850,000 is alot but its only $42,000 a year which is about 25% less than what

i was earning, so essentially i get 80% of my average wage for the next 20 years

so i have to invest it smart.

i think bricks & mortar is a solid investment.tb

 

[Julia]

i

i think bricks & mortar is a solid investment.tb

Most people say that because it's what's most familiar to them. When prices are in many places falling and there's little indication of that changing appreciably, and net yield from rents is not high enough to compensate for the lack of capital gain, I'd be doing the sums on that very carefully if I were you.

$850,000 is not enough to be careless with if you want to generate enough to live on for the rest of your life.
(I'm assuming you're still some distance from usual retirement age?)

All very well for SC to suggest it can generate a reasonable yield from stocks, but it sounds as though you're less than experienced in the market, tigerboi, so that generated income could well be quickly offset by loss of your capital.

I'd be spending your 'deciding time' very carefully looking into the options and actually doing the "what it" calculations.

 

[matty77]

interesting question but really a lot depends on where you are with you life, from what you are saying it seems like you are far from retirement.

I had similar money coming out of an investment this year and have just rolled it all over for another 5 years, I am hoping in another 5 years it will be around 2 million and that time I will pull it out. So I was thinking about what I would do a fair bit if I decided to take it all out.

If that money was coming to me this is what I would do:

Put it all into a LTD for minimum of 6 months, this will give me time to think about what I want to do with it.

My suggestion would be to spread your investments:

Put 250k into your property
Put 250k into a long term deposit
Put 250k into Shares, long term
Spend 50+k - buy a new car to make yourself feel happy, waste it.

The worst thing you can do is going and waste it on crap, this might be the only time in your life that you have a chance to invest this size of money so you need to think carefully about it.

I always say that when I invest for the future save now and spend later, when I retire all the money will get spent, I can only advise that you put it all away and spend as little as possible now. Once it has gone it has gone...

I have my long term strategy on investment, basically that money is "dead" to me until I retire, it doesnt exist and just builds up passively in the back ground.

This is a good time for you to put in some plans to generate passive income until your retirement, I would suggest doing that and NOT reducing your work or taking it easy - dont take the foot off the accelerator until you are ready to retire.

I think that makes sense.

 

[prawn_86]

Man i would love to have 850k to invest like Matty, although i understand TBs situation is a bit different

Personally i think with that amount of money you can't go wrong paying off your home and owning it debt free. I would then split the balance into a mix of shares, hybrids, term deposits and possibly some precious metals. In the current market no-one knows where we are going next so i am of the belief that diversification is of the best bet.

Alternatively you could keep the surplus funds until a golden investment comes along. Are you looking for income from the 850k, or will you have an alternative income?

 

[young-gun]

I'd buy 500k of silver and 300k of gold immediately, then an african safari..Ill think about the rest when we return

 

[drillinto]

I would give better prizes for the winners of Aussie Stock Forum's Stock Tipping Competition
***

 

[DB008]

Fly to vegas. But all on black....pray....

 

[lindsayf]

No, no, no! I reckon it's absolutely worth the extra cost. If you can afford the destination with hotels etc., you can afford the comfort of not being squashed between a couple of obese cretins that can make the trip a total nightmare.

Holy cow! I'm never flying economy again if that's what happens!

 

[tigerboi]

i am only 47 in february & thanks for all the sound advice so i do like property but maybe later on say 5-10 years.

heres what ive been thinking i prefer to invest in an income producing asset so i can outlay $350,000 to start

my own business in the industry i know... transport...that $350,000 will return $2,160,000 in revenue first year,

with approx $648,000 mine less the $350,000 start up. also ive still got $500,000 to live on.

thats my thoughts use the money to go into business rather than tie up a large amount in a unit.

what do you guys think?is it a wise move or keep about half in a property which i like but maybe later on

as i do think property is expensive.

my company is TFL (TIGERBOI FREIGHTLINES) national logistics.

 

[tigerboi]

This is a good time for you to put in some plans to generate passive income until your retirement, I would suggest doing that and NOT reducing your work or taking it easy - dont take the foot off the accelerator until you are ready to retire.
I think that makes sense.

matty i got injured at work & had to have surgery on my neck & i cant go back to work
so thats the reason i am getting a large payout.if i could i would put it in the bank & just go back to work.
essentially ive been retired from any physical activity such as truck driving/loading/unloading as
i can only handle about 3 -5 kg strain on my neck.